Warrant
WarrantNo.
June2013-___
DigitalCaddies,Inc.
(anOklahomaCorporation)
WarrantforthePurchaseof______SharesofCommonStock,ParValue$0.001
[ThisWarrantWillBeVoidAfter5:00P.M.PacificTimeOnDecember 19,2014
ThesesecuritieshavenotbeenregisteredwiththeU.S.SecuritiesandExchangeCommission(the“SEC”)under theSecuritiesActof1933,asamended(the“SecuritiesAct”),andarebeingofferedinrelianceonexemptionsfromregistrationprovidedinSection4(2)oftheSecuritiesActandRule506ofRegulationDpromulgatedthereunderandpreemptionfromtheregistrationorqualificationrequirements(otherthannoticefilingandfeeprovisions)ofapplicablestatelawsundertheNationalSecuritiesMarketsImprovementActof1996.
THISWARRANT(this“Warrant”)certifiesthat,for valuereceived___________orregisteredassigns(the“Holder”or“Holders”),isentitled,atanytimeonorbefore5:00p.m.PacificStandardTimeonDecember 19,2014,to subscribefor,purchase,andreceive___________ shares(the“Shares”)offullypaidandnon-assessablecommonstock,parvalue$0.001(the“CommonStock”)ofDigitalCaddies,Inc.,anOklahomaCorporation(the“Company”).TwoWarrantsareexercisabletopurchase 1Shareatapriceof$0.20pershare(the“ExercisePrice”).Thenumberof SharestobereceivedonexerciseofthisWarrantandtheExercisePricemaybeadjustedontheoccurrenceofcertaineventsasdescribedherein.Iftherightsrepresentedherebyarenotexercisedby5:00p.m.PacificStandardTimeonDecember 19,2014,thisWarrantshallautomaticallybecomevoidandofnofurtherforceoreffect,andallrightsrepresentedherebyshallceaseandexpire.
Subject tothetermssetforthherein,thisWarrantmaybeassignedbytheHolder inwholeorinpartbyexecutionoftheformofassignmentattachedheretoormaybe exercisedbythe HolderinwholeorinpartbyexecutionoftheformofexerciseattachedheretoandpaymentoftheExercisePriceinthemannerdescribedabove,allsubjecttothetermshereof.
1.ExerciseofWarrants.TheHoldershallhavetherightsofastockholderonlywithrespecttoSharesfullypaidforbytheHolderunderthisWarrant.OntheexerciseofalloranyportionofthisWarrantinthemannerprovidedabove,theHolderexercisingthesameshallbedeemedtohavebecomeaHolderofrecordoftheSharesastowhichthisWarrantisexercisedforallpurposes,andcertificatesforthesecuritiessopurchasedshallbedeliveredtotheHolderwithin areasonabletime,butinnoeventlongerthan10daysafterthisWarrantshallhavebeenexercisedassetforthabove.IfthisWarrantshallbeexercisedinrespecttoonlyapartoftheSharescoveredhereby,theHolder shallbeentitledtoreceive asimilarWarrantofliketenoranddatecoveringthenumberof ShareswithrespecttowhichthisWarrantshallnothavebeenexercised.
2.AssignmentofWarrants.IntheeventthisWarrantisassignedinthemannerprovidedherein,theCompany,uponrequestanduponsurrenderof thisWarrantbytheHolderattheprincipalofficeof theCompanyaccompaniedbypaymentofalltransfertaxes,ifany,payableinconnectiontherewith,shalltransferthisWarrantonthebooksoftheCompany.Iftheassignmentisinwhole,theCompanyshallexecuteanddeliveranewWarrantorWarrantsofliketenortothisWarranttotheappropriateassigneeexpresslyevidencingtherighttopurchasetheaggregatenumberofSharespurchasablehereunder;andiftheassignmentisinpart,theCompanyshallexecuteanddelivertotheappropriateassigneeanewWarrantorWarrantsofliketenorexpresslyevidencingtherighttopurchasetheportionoftheaggregatenumberofSharesasshallbecontemplatedbyanysuchagreement,andshallconcurrently executeanddelivertotheHolder anewWarrantofliketenortothisWarrantevidencingtherighttopurchasetheremainingportionoftheSharespurchasablehereunderthathavenotbeentransferredtotheassignee.
3.FullyPaidShares.TheCompanycovenantsandagreesthattheSharesthatmaybeissuedontheexerciseofthisWarrantwill,onissuancepursuanttothetermsofthisWarrant,befullypaidandnon-assessable,free fromalltaxes,liens,andchargeswithrespecttotheissuethereof,andnotissuedinviolationofthepreemptiveor
similarrightofanyotherperson.TheCompanyfurthercovenantsandagreesthatduringtheperiodwithinwhichtherights representedbythis Warrantmaybeexercised,theCompanywillhaveauthorizedandreserved asufficientnumberofSharesofCommonStocktoprovidefortheexerciseoftherightsrepresentedbythis Warrant.
4.Call Provision. If the closing market price of the Company’s common stock exceeds $0.40 per share (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like as set forth in Section 5) for each of 10 consecutive Trading Days (the “Measurement Period”), then the Company may, at any time in its sole discretion, call for the exercise of this Warrant, in its entirety (“Call Right”). To exercise the Call Right, the Company must deliver to the Holder an irrevocable written notice (a “Call Notice) indicating that the provisions of this Section of the Warrant have been satisfied, and that the Holder accordingly must exercise all, or a portion, of this Warrant prior to the Call Date, as defined below. Such Call Notice shall include language notifying Holder that failure to comply with the Call Notice shall result in the forfeit and cancellation of any unexercised Shares granted to Holder hereunder. If the conditions set forth above for such Call Notice are met and the Holder has not exercised all of the Shares exercisable under this Warrant by delivering a Notice of Exercise and payment therefor to the Company within thirty Trading Days after the date the Call Notice is received by the Holder (such date and time, the “Call Date”), then the Warrants for which a Notice of Exercise shall not have been received by the Call Date will be cancelled at 5:00 p.m. (Pacific Standard Time) on the Call Date. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to the Shares subject to a Call Notice that are tendered through 5:00 p.m. (Pacific Standard Time) on the Call Date. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a Call Notice or require the cancellation of this Warrant (and any such Call Notice shall be void), unless, from the beginning of the Measurement Period through the Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered by 5:00 p.m. (Pacific Standard Time) on the Call Date, and (2) there is a sufficient number of authorized shares of Common Stock for issuance of all Shares under this Warrant, and (3) the issuance of the Shares shall not cause a breach of any provision of this Warrant.
5.AdjustmentofExercisePriceandNumberofShares.
(a)AdjustmentofExercisePriceandNumberofShares.ThenumberofSharespurchasableontheexerciseofthisWarrantandtheExercisePriceshallbeadjustedappropriatelyfromtimetotimeasfollows:
(i)IntheeventtheCompanyshalldeclareadividendormakeanyotherdistributiononanycapitalstockoftheCompanypayableinCommonStock,rightstopurchaseCommonStock, orsecuritiesconvertibleintoCommonStock,orshallsubdivideitsoutstandingsharesofCommonStockintoagreaternumberofsharesorcombinesuchoutstandingstockintoasmallernumberofshares,thenineachsuchevent,thenumberofSharessubjecttothis Warrantshallbeadjustedsothat theHoldershallbe entitledtopurchasethekindandnumberofSharesofCommonStockorothersecuritiesoftheCompanythatitwouldhaveownedor havebeenentitledto receiveafterthehappeningofanyoftheeventsdescribedabove,hadsuch Warrantbeenexercisedimmediatelypriortothehappeningofsucheventoranyrecorddatewithrespectthereto;anadjustmentmadepursuanttothissubsection(a)shallbecomeeffectiveimmediatelyaftertheeffectivedateofsucheventretroactivetotherecorddateforsuchevent.
(ii)NoadjustmentinthenumberofSharespurchasablehereundershallberequiredunlesssuchadjustmentwouldrequireanincreaseordecreaseofatleast1%inthenumberofSharespurchasableontheexerciseofthisWarrant;provided, however, thatanyadjustmentsthatbyreasonofthissubsection(a)arenotrequiredtobemadeshallbecarriedforwardandtakenintoaccountinanysubsequentadjustment.
(iii) WheneverthenumberofSharespurchasableontheexerciseofthisWarrantisadjusted,ashereinprovided,theExercisePricepayableonexerciseshallbeadjustedbymultiplyingtheExercisePriceimmediatelypriortosuchadjustmentby afraction,thenumeratorofwhichshallbe thenumberofSharespurchasableon theexerciseofthisWarrantimmediatelypriortosuch adjustmentandthedenominatorofwhichshallbethenumberofSharessopurchasableimmediatelythereafter.
(iv)WheneverthenumberofSharespurchasableontheexerciseofthisWarrantortheExercisePriceofsuchSharesisadjusted,ashereinprovided,theCompanyshallcausetobe promptlymailedbyfirstclassmail,postageprepaid,to theHolderof this Warrantnoticeofsuchadjustment oradjustmentsandshalldeliver aresolutionoftheboardofdirectorsoftheCompanysettingforththenumberofSharespurchasableontheexerciseofthisWarrantandtheExercisePriceofsuchSharesaftersuchadjustment,settingforth abriefstatementofthefactsrequiringsuchadjustment,togetherwiththecomputationbywhichsuchadjustmentwasmade.Suchresolution,in theabsenceofmanifesterror,shallbeconclusiveevidenceofthecorrectnessofadjustment.
(v)Allsuchadjustmentsshallbemadebytheboard ofdirectorsoftheCompany,whichshallbebindingontheHolderintheabsenceofdemonstrableerror.
(b)NoAdjustmentinCertainCases.Noadjustmentsshallbemadeinconnectionwith:
(i)theissuanceofanySharesontheexerciseofthisWarrant;
(ii)theconversionofsharesofPreferredStock;
(iii)theexerciseorconversionofanyrights,options,warrants,orconvertiblesecurities
containingtherighttopurchaseoracquireCommonStock;
(iv)theissuanceofadditionalSharesorothersecuritiesonaccountoftheanti-dilution provisionscontainedinorrelatingto this Warrantoranyotheroption,warrant,orrightto acquireCommonStock;
(v)thepurchaseorotheracquisitionbytheCompanyofanysharesofCommonStock,evidencesofitsindebtedness orassets,orrights,options,warrants,orconvertiblesecuritiescontainingtherighttosubscribefororpurchaseCommonStock;or
(vi)thesaleorissuancebytheCompanyofanysharesofCommonStock,evidencesofitsindebtednessorassets,orrights,options,warrants,orconvertiblesecuritiescontainingtherighttosubscribefororpurchaseCommonStockorothersecuritiespursuanttooptions,warrants,orotherrightstoacquireCommonStockorothersecurities.
6.NoticeofCertainEvents.Intheeventof:
(a)anytakingbytheCompanyofarecordoftheholdersofanyclassofsecuritiesoftheCompanyforthepurpose ofdeterminingtheholders thereofwhoareentitled toreceiveanydividendsorotherdistribution,oranyrighttosubscribefor,purchase,orotherwiseacquireanysharesofstockofanyclassoranyothersecuritiesorproperty,ortoreceiveanyotherrights;
(b)anycapitalreorganizationoftheCompany,anyreclassificationorrecapitalizationofthecapitalstockoftheCompany,oranytransferofallorsubstantiallyalloftheassetsoftheCompanytoanyotherperson,oranyconsolidation,shareexchange,ormergerinvolvingtheCompany;or
(c)anyvoluntaryorinvoluntarydissolution,liquidation,orwindingupoftheCompany,
theCompanywillmailtotheHolder(s)ofthisWarrant,atleast20dayspriortotheearliestdatespecifiedtherein, anoticespecifyingthedateonwhichanysuchrecordistobetakenforthepurposeofsuchdividend,distribution,orright;theamountandcharacterofsuchdividend,distribution,orright;orthedateonwhichanysuchreorganization,reclassification,transfer,consolidation,shareexchange,merger,dissolution,liquidation,orwindingupoftheCompanywilloccurandthetermsandconditionsofsuchtransactionorevent.
7.LimitationofTransfer.Subjecttotherestrictionssetforthinparagraph 7hereof,thisWarrantistransferableattheofficesoftheCompany.Onsuchtransfer,everyHolderhereofagreesthattheCompanymaydeemandtreattheregisteredHolder(s)ofthisWarrantasthetrueandlawfulowner(s)thereofforallpurposes,andtheCompanyshallnotbeaffectedbyanynoticetothecontrary.
8.DispositionofWarrantsorShares.EachregisteredownerofthisWarrant,byacceptancehereof,agreesforitselfandanysubsequentowner(s)that,beforeany dispositionismadeofanyWarrantsorSharesofCommonStock,theowner(s)shallgivewritten noticetotheCompanydescribingbriefly themanner ofanysuchproposeddisposition.Nosuchdispositionshallbemadeunlessanduntil:
(a)theCompanyhasreceivedwritten assurancesfromtheproposedtransfereeconfirmingafactualbasisforrelyingonexemptionsfromregistrationunderapplicablefederalandstatesecuritieslawsforsuchtransferoranopinionfromcounselfortheHolder(s)ofthe WarrantsorSharesstatingthatnoregistrationundertheSecuritiesActorapplicablestatestatuteisrequiredwithrespecttosuchdisposition;or
(b)aregistrationstatementundertheSecuritiesActhasbeenfiledbytheCompanyanddeclaredeffectivebytheSECcoveringsuchproposeddispositionandthedispositionhasbeenregisteredor qualified,orisexempttherefrom,underthestatehavingjurisdictionoversuchdisposition.
9.RestrictedSecurities:RegistrationofSecurities.TheHolderacknowledgesthatthisWarrantis,andthattheSharesissuableonexercisehereofwillbe,“restrictedsecurities”asthattermisdefinedinRule144promulgatedundertheSecuritiesAct.Accordingly,this Warrantmustbetakenfor investmentandheldindefinitely.Likewise,anySharesissuedonexerciseofthisWarrantmustbetakenforinvestmentandheldindefinitelyandmaynotberesoldunlesssuchresaleisregisteredundertheSecuritiesActand/orcomparablestatesecuritieslawsorunlessanexemptionfromsuchregistrationisavailable.AlegendtotheforegoingeffectshallbeplacedconspicuouslyonthefaceofallcertificatesforSharesissuableonexerciseofthisWarrant.
10.ReportsunderExchangeAct.WithaviewtomakingavailabletotheHoldersthebenefitsofRule
144promulgatedundertheSecuritiesActandanyotherruleorregulationoftheSECthatmayatanytimepermitaHoldertoselltheSharesissuableonexerciseofthis Warrant,theCompany shall,untilsuchSharesmayberesoldpursuanttotheprovisionsofRule144oranysimilarprovision:
(a)makeandkeeppublicinformationavailable,asthosetermsareunderstoodanddefinedin
SECRule144;
(b)filewiththeSECinatimelymannerallreportsandotherdocumentsrequiredofthe
CompanyundertheSecuritiesActandtheSecuritiesExchangeActof1934;and,
(c)furnishtoanyHolder,forthwithuponrequest:(i)awrittenstatementbytheCompanythatithascompliedwithRule144,theSecuritiesExchangeActof1934;and(ii) acopyofthemostrecentannualorquarterlyreportoftheCompanyandsuchotherreportsanddocumentssofiledbytheCompany;and(iii)suchotherinformationasmaybereasonablyrequestedinavailinganyHolderofanyruleorregulationoftheSECthatpermitsthesellingofanysuchsecuritieswithoutregistrationorpursuanttosuchform.
11.GoverningLaw.ThisWarrantshallbeconstruedunderandbegovernedbythelawsofthestateof
Oklahoma.
12.Notices.Anynotice,requestorotherdocumentrequiredorpermittedtobegivenordeliveredtothe
HolderbytheCompanyshallbedeliveredinaccordancewiththenoticeprovisionsofthePurchaseAgreement.
13.NonwaiverandExpenses.NocourseofdealingoranydelayorfailuretoexerciseanyrighthereunderonthepartofHoldershalloperateas awaiverofsuchrightorotherwiseprejudiceHolder’srights,powersorremedies,notwithstandingthefactthatallrightshereunderterminateontheTerminationDate.IftheCompany willfullyandknowinglyfailstocomplywithanyprovisionofthisWarrant,whichresultsinanymaterialdamagestotheHolder,theCompanyshallpaytoHoldersuchamountsasshallbesufficienttocoveranycostsandexpensesincluding,butnotlimitedto,reasonableattorneys’fees,includingthoseofappellateproceedings,incurredbyHolderincollectinganyamountsduepursuantheretoorinotherwiseenforcinganyofitsrights,powersorremedieshereunder.
14.Remedies.Holder,inadditiontobeingentitledtoexerciseallrightsgrantedbylaw, includingrecoveryofdamages,willbeentitledtospecificperformanceofitsrightsunderthisWarrant.TheCompanyagreesthatmonetarydamageswouldnotbeadequatecompensationforanylossincurredbyreasonof abreachbyitoftheprovisionsofthisWarrantandherebyagreestowaivethedefenseinanyactionforspecificperformancethat aremedyatlawwouldbeadequate.
15.SuccessorsandAssigns.Subjecttoapplicablesecuritieslaws,thisWarrantandtherightsandobligationsevidencedherebyshallinuretothebenefitofandbebindinguponthesuccessorsoftheCompanyandthesuccessors andpermittedassignsofHolder.TheprovisionsofthisWarrantareintendedtobeforthebenefitofallHoldersofthisWarrantfromtheInitialExerciseDatethroughtheTerminationDate,andshallbeenforceablebyanysuchHolderorholderofWarrantShares.
16.Amendment.ThisWarrantmaybemodifiedoramendedortheprovisionshereofwaivedwiththewrittenconsentoftheCompanyandtheHolder.
17.Severability.Whereverpossible,eachprovisionofthisWarrantshallbeinterpretedinsuchmannerastobeeffectiveandvalidunderapplicablelaw,butifanyprovisionofthisWarrantshallbeprohibitedbyorinvalidunderapplicablelaw,suchprovisionshallbeineffectivetotheextentofsuchprohibitionorinvalidity,withoutinvalidatingtheremainderofsuchprovisionsortheremainingprovisionsofthisWarrant.
18.Headings.TheheadingsusedinthisWarrantarefortheconvenienceofreferenceonlyandshallnot,foranypurpose,bedeemed apartofthisWarrant.
19.Loss,Theft,Destruction,orMutilation.UponreceiptbytheCompanyofreasonableevidenceoftheownershipofandtheloss,theft,destruction,ormutilationofthisWarrant,theCompanywillexecuteanddeliver,inlieuthereof, anewWarrantofliketenor.
20.Taxes.TheCompanywillpayalltaxesinrespectoftheissueofthisWarrantortheSharesissuableuponexercisethereof.
DATEDthis16thdayofJune2014.
DigitalCaddies,Inc.
By:
BradNightingale,CEO
NOTICE OF EXERCISE
(to be signed only upon exercise of Warrant)
TO: DIGITAL CADDIES, INC.
The undersigned, the owner of the attached Warrant, hereby irrevocable elects to exercise the purchase rights represented by the Warrant for, and to purchase thereunder, ____________________shares of Common Stock of Digital Caddies, Inc., and herewith makes payment of $____________________ therefore. Please issue the shares of Common Stock as to which this Warrant is exercised in accordance with the instructions set forth below and, if the Warrant is being exercised with respect to less than all of the Shares to which it pertains, prepare and deliver a new Warrant of like tenor for the balance of the Shares purchasable under the attached Warrant.
DATED this day of 20 .
Signature:_________________________________
Signature Guaranteed:________________________
INSTRUCTIONS FOR REGISTRATION OF STOCK
| Name: | _________________________________ |
| (Please Type or Print) | |
| Address: | _________________________________ |
| _________________________________ | |
| _________________________________ |
NOTICE: The signature to the form of purchase must correspond with the name as written upon the face of the attached Warrant in every particular without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to
| Name: | ________________________________________ |
| (Please Print) | |
| Address: | ________________________________________ |
| (Please Print) | |
| Dated: _______________ __, ______ | |
| Holder’s Signature: _________________ | |
| Holder’s Address: __________________ |
